GLOBALIZATION

BY

DHARMIN .V. KORADIA

Video: Emerging Powers: India

What did you find informative
about this film?
What is the basic argument that
the film presents about India and
about globalization?
How does the film interpret such
things as Indias widespread
poverty and its periodic flare-ups
of ethnic and religious strife?
Why are India and China so
important?

Globalization in its current phase has

been described as an unprecedented
compression of time and space
reflected in the tremendous
intensification of social, political,
economic, and cultural
interconnections and
interdependencies on a global scale.
Stegler, p. ix

time-space compression
deterritorialization and supraterritoriality

One way to
approach this: think
about the world
before globalization
Distance matteredspace often measured in
time
Territorial boundaries more or less kept
things in and out
Society and culture had spatial referents
Everything had its place (literally)

In a world of deterritorialization and

supraterritoriality:
Distance becomes almost irrelevant (the end of
distance)
Boundaries are increasingly permeable.
Groups and cultures increasingly dont have a
territorial basis
A new kind of non-physical place is emerging

Bosworth and Gordon: A survey of

some key processes of globalization
Technological advances
Expansion of international commerce (exports
and imports)
Rising importance of private capital flows
(stock markets and multinational corporations)
Increasing travel and migration (international
tourism and domestic diversity)
Increased communication and interaction
between peoples (through all sorts of media)

Bosworth and Gordon also point to some of the

key public controversies over globalization:
What are they?

Can globalization be harnessed so that all citizens

and countries benefit and not just the lucky few?

Frank Lechner: Empirical Debates

1. Process vs. Project
2. New Era vs. Nothing New (Globabaloney)
3. Hard vs. Soft
4. End vs. Revival of Nation State
5. Cultural Sameness vs. Difference

Amartya Sen: How to Judge

Globalization (Normatively)
1. 1. Is globalization
Westernization? Is it a threat
to non-western societies?
2. What is the right question to
ask about globalization and
the poor?
3. What are the legitimate
questions that antiglobalization protestors ask?

Our global civilization is a world

heritage... The idea of an immaculate
Western conception is an imaginative
fantasy.
Globalization has much to offer, but even
as we defend it, we must also, without
any contradiction, see the legitimacy of
many questions that the antiglobalization
protestors ask.
The world powers bear an awesome
responsibility for helping in the
subversion of democracy in Africa and ofr
all the far-reaching negative
consequences of that subversion.

Over the past decade globalization has

been driven by technological
advances..But globalization has also
been driven by policies and ideas
Bosworth & Gordon

Next time: globalization as a neoliberal

project

Performance of acquisitions
We used an event study methodology

Sample - Indian companies had cross- border acquisitions

during 2002-2006.

224 transactions: 127 different companies from 33 industries.

We used BSE-500 (represents nearly 93% of the total market capitalization
on Bombay Stock Exchange Limited) as the market index for the
calculations.
Calculating CAR
Used the following formula
to calculate the abnormal returns ^ ^
ARit = Rit - i - i Rmt, (t = -7 to t= +7)

The CAR was calculated

the following formula CAR = using
AR
t = +7

Copyright NUS Business School 2008

t = -7

it

Summary
Acquisitions a prominent part of OFDI from India
Good distribution across industries and regions
Achieving an increased prominence, strong growth
Important component to OFDI and strategy of MNCS from India
Strategy and performance
Performance strong on an absolute and a comparative basis
Several market expansion motives related to good performance
Market clearly rewarding international expansion strategy of
Indian firms
Need comparative analysis to other modes
Need deeper analysis of strategy and performance of
acquisitions

Copyright NUS Business School 2008